Wage Cuts and Layoffs... Workers Struggling to Make a Living Due to COVID-19 'In Tears'

Increase in Cases of Wage Arrears, Forced Unpaid Leave, and Dismissal
Economic Hardships Due to COVID-19...Employees Taking Side Jobs
Experts "Government Must Improve Social Safety Net Systems to Resolve Issues for Companies and Workers"

Due to the spread of the novel coronavirus infection, cases of workers complaining about 'workplace power harassment,' such as being forced to take unpaid leave and annual leave, are increasing. Photo by Yonhap News

[Asia Economy Reporter Kim Suwan] "I was forced to take a pay cut due to business deterioration," "Isn't forcing unpaid leave an abuse of power?"

As the novel coronavirus infection (COVID-19) resurges, it has been revealed that some companies are violating the Labor Standards Act under the pretext of business difficulties, engaging in so-called 'gapjil' (abuse of power). Measures such as unpaid leave and wage cuts are being implemented, leading to workers' outcry. Some employees are even taking on side jobs to make ends meet.

Experts pointed out that since both companies and workers are suffering due to COVID-19, the government should step in to mediate the situation.

Recently, some companies have been found to force employees to take unpaid leave or use annual leave. According to a survey titled 'COVID-19 and Changes in Workplace Life' conducted in April by the labor rights group Workplace Gapjil 119 and the Public Coexistence Solidarity Fund, targeting 1,000 workers aged 19 to 55 nationwide, one in five non-regular workers (19.5%) reported being forced to take unpaid leave (unpaid vacation or unpaid leave).

Among regular workers, 8.0% reported being forced to take unpaid leave, and 15.3% were compelled to use annual leave.

As workforce reductions have intensified since COVID-19, cases of recommended resignation or unfair dismissal have also increased. According to a survey on 'Dismissal Experience after COVID-19' conducted last month by the employment portal Incruit with 631 workers, 68.1% of respondents reported being urged to resign or dismissed against their will. Notably, 30.2% experienced dismissal after COVID-19, meaning that 3 out of 10 dismissed workers were let go post-pandemic.

Due to the recent surge in COVID-19 cases, some companies have been found to be effectively disregarding the Labor Standards Act and illegally imposing personnel transfers and other measures on employees, citing reasons such as business deterioration. Photo by Yonhap News

In light of this, Workplace Gapjil 119 disclosed reports from May to July last month showing that employers are shifting business difficulties onto workers by withholding wages, forcing unpaid leave, and dismissing employees under the pretext of COVID-19.

Workplace Gapjil 119 stated while revealing these cases, "COVID-19 is being used like a master key to halve salaries, force unpaid overtime, and expel employees who are disliked."

According to disclosed cases, Company A, where employee A worked, cut salaries to 60% of the usual amount in April and May due to worsening COVID-19 conditions, while still demanding normal attendance and six-day workweeks.

There was also a worker who was unfairly reassigned after refusing recommended resignation. Employee B, working at a hospital, took unpaid leave in March due to business difficulties caused by COVID-19 but was told via messenger in April that the hospital wanted to "wrap up work."

B tried to accept the hospital's recommended resignation but, upon discovering a job posting for their position, refused and was reassigned to a branch office.

There were also cases where unpaid leave was forcibly imposed without workers' consent. Employee C, working at a restaurant under a mid-sized company, claimed, "The business continues operating, but employees are taking unpaid leave in rotation," and said they agreed to unpaid leave out of fear of dismissal.

Other frequent cases included wage cuts, six-day workweeks, forced use of annual leave, choosing between severance pay or unemployment benefits, and unfair dismissal.

Under current law, if a company suspends operations due to the employer's intentional or negligent actions, it must pay full wages during the suspension period. However, proving intent or negligence is practically difficult.

Workers lamented that due to the COVID-19 situation making employment difficult, they cannot object to company abuses. They fear retaliation if they raise issues, making it realistically hard to file complaints. Kim (27), an employee at a small-to-medium enterprise, said, "Recently, the company notified us by text that meal allowances and bonuses would not be paid. Although the company's situation worsened due to COVID-19, handling this without consent made me very angry."

He added, "I thought about reporting it but held back because I have no way to make a living. I asked people around me, but everyone said to endure it because everyone is struggling due to COVID-19. It’s frustrating to have to endure despite it violating labor laws."

Due to the novel coronavirus infection, office workers whose incomes have decreased have taken on two jobs (Two Job·side jobs). Photo by Yonhap News

Given this situation, workers whose income suddenly dropped and who are struggling to make ends meet are reportedly taking on side jobs.

According to a survey, 5 out of 10 adult men and women are either already working a second job or considering it after the COVID-19 outbreak. The main reasons were economic, including job insecurity and lack of income sources.

In a survey by Incruit targeting 1,599 respondents with part-time job search experience after COVID-19, 22.1% of workers said they are "already working a second job," and 44.7% said they are "considering a second job."

The biggest reason for taking on a second job was "because income and earnings from the main job decreased due to COVID-19" (45.1%), followed by "need for additional income" (35.4%) and "to gain experience in jobs other than the current one" (8.1%).

Experts suggested that the government improve social safety net systems to resolve issues between companies and workers.

Professor Kim Taegi of Dankook University's Department of Economics analyzed, "Currently, due to COVID-19, companies' financial conditions have worsened, leading to more cases where the Labor Standards Act is not being followed. From workers' perspectives, they cannot accept such decisions as they need to sustain their livelihoods."

He added, "However, it is not possible to punish business owners indiscriminately. Although social safety nets like wage claim guarantee systems exist, they are not functioning properly. The government should step in to supplement and organize these systems to mediate conflicts."

This content was produced with the assistance of AI translation services.